Chipmakers Weigh Down US Stocks Amid Oil Drop and Iran Sanctions

US stocks took a hit on Monday as chipmakers led the way in losses, overshadowing a decline in oil prices.

The news comes just days before Nvidia Corp.'s earnings are set to be released, and some of its major customers have been informed of AI-related price hikes above 15%.

This sent an ETF tracking memory shares plummeting by 5.5%, while the Nasdaq 100 lost 0.8%.

Treasury Secretary Scott Bessent announced a plan to isolate Iran from the global economy, threatening economic punishment against any country doing business with the nation.

Meanwhile, Federal Reserve Chair Kevin Warsh is set to address stubborn inflation at the annual gathering in Jackson Hole, Wyoming on Friday, where he will offer keynote remarks for the first time as leader of the world's top central bank.